e’re working on a lot of deals right now, even with a recession on the way. Sellers are accepting our offers and there’s still a ton of opportunity. For those just starting out, it is totally possible for you to make $10K in 10 hours per week. No matter what might be happening in the stock market, tried and true marketing strategies like direct mail and cold calling will always work. Staying close to your network and keeping your business lean are just some of the ways you should be preparing for an upcoming recession.
The name of the game is knowing how to follow the demand. Whether it’s wholesaling homes or vacant land deals, there are huge opportunities right now if you know where to look. For those of you that are new, you can start right now by reading up on fast cash strategies and getting familiar with creative financing. Coaching programs and masterminds along with listening to podcasts are all ways to learn from successful investors. Flipping homes can be a slow came, and it’s better to focus on quicker strategies like wholesaling during a recession. There’s a lot less hassle and financial risk in wholesaling, and you can wind up with the same amount of money as you would in a flip.
Download our free PDF road map by clicking the link below.
Watch the Episode:
- Where the biggest current real estate opportunities are and how to find them.
- Why it’s important to keep your business lean and overhead costs low in a recession.
- Top marketing strategies to put in place right now.
Joe: Hey, guys. How you doing, Joe? And I’m with…
Gavin: Gavin. Joe, how are we?
Joe: Good. So it’s been a crazy busy day and good in a lot of ways, right? Talking to some private investors on my way to and from a chiropractic, I signed up for a chiropractor.
Gavin: Oh, yeah. Look at you.
Joe: Driving towards to my chiropractor’s office, talking to private investors. We got a lot of deals that we’re working on right now, vacant land deals, which is awesome. And we are partnering now with some of our clients and some other people on funding these deals. And we’re getting so many deals right now. Normally in the past, I just use my own money to turn these things really fast, but I want to start bring it on partners and private investors. So that’s been good. I mean, like things are slowing down in this recession that we’re coming into, but there’s still a ton of opportunity and we’re finding more sellers are accepting our offers now than have ever have before, which is cool. We’re breaking into some new markets. What’s been going on with you in the on the house side of things?
Gavin: Yeah, we we closed three last week that I talked about in the other episode. We have one in closing this week. This one should be just over 10,000. So it’s a smaller one. But again, nothing to turn your nose up at. And then we’ve got a couple more in the pipeline that we’re trying to get contracted right now. So yeah, things are happening. Market is still going ahead. The VA has a call and they’re bringing leads in every day to stay consistent.
Joe: Your main marketing strategy is cold calling for houses. Mine is plain old, boring direct mail for vacant land. And they both are working. I mean, we’re we’re doing what we teach and we’re teaching what we’re doing. Yeah, it’s pretty simple, straightforward. And there are deals that can be done in this market and in any market or I think a lot of people are afraid this is why we’re kind of doing this podcast series and why we’re talking about our free PDF report, which you can get your hands on at REI proof dot com. But people are a lot of a lot of people are concerned like when can you really do deals in this market? Is there really any opportunity out there? What about me? I’m brand new. I have a full time job. I don’t want to lose my nights and weekends. I can I make ten grand in 10 hours a week? The answer is yes, 100%. You can. And we’re gonna be talking about this a lot in today’s content. There’s a lot of opportunity out there right now. There’s a lot of opportunity. And we’re going to be covering things that are especially important right now in this economy that we’re in and things that you need to be really, really good at as we come into this recession, because it is coming and we’re going to be ready for it. We’re prepared for it. I’m excited about it. And this is the best time to be one of our coaching clients. I’ll be honest and straight up about that, because we know it works. We’ve been there, done that, been through pre prior recessions before. I’ve been coached by people who have been through many recessions in the past, and we are masters students. We actually spend a lot of time and money networking and masterminding with other investors. I mean, literally, there’s probably not a city anywhere in this, a major city anywhere in this country, Gavin, that you or I couldn’t pick up the phone and call one or two investors in and find somebody to partner with on deals right now.
Gavin: Yeah, you networks, everything. You know the reason I picked REI network is because of that, right? You build your network up and you’re only good as the people around you. So when you couldn’t have a good network, you go to Masterminds again. We invest a lot of money in them, but your return is huge. And that’s the point. You’re not just we don’t look at it as well. We’re spending all this money. Not if we can pick up the phone and move this deal or get advice on this or hey, what are you we’re saying this is not what you’re saying, you know, bashing ideas off each other, all these things that obviously get you prepared for what’s to come and how that’s going to go down. And I think as we talked about in previous episodes as well, I’m making sure that you have a lean business. You know, your expenses are low, your profit margins are high, you control in property without owning it. All of these things is going to get you through that recession for whatever’s ahead of us.
Joe: Exactly right. And where are you going to be ready for it? We are going to be ready for it. All right. So we have this mind map and in this mind map, you can get this mind map. It’s included with the pdf REI proof dot com. Go to REI proof dot com. It’s free. Did I mention that unless you hate money do not go to REI proof dot com do not put your info in there to get this pdf. If you hate money just don’t do it. We don’t want it. We don’t you don’t need it. But anyway, we’re covering all of these concepts that we talked about in this roadmap. We’re kind of diving into deeper detail. It’s a legit PDF with graphics and images, and I know it’s hard to see it. It’s really amazing. And we have some tools and resources in here that we’re going to be showing you later as well, some calculators and scripts and it’s going to be super helpful for you. But you can also get the mind map. So you need to get the. His mind map that we’re looking at right now, because it’s going to give you the tools and the links and the resources that we’re talking about in here. All right. So let’s look at these big opportunities that we’re talking about in real estate. And I’m going to zoom in a little bit. Gavin, how does that look? That’s good. So these are the big opportunities right now in real estate. And if you’re new to the business, let me just say this right up here, right up front, you’re in the right place at the right time. This right now is the best time to be in the business. What time is it, Gavin? Now the time is now 100%. So some people are like, Man, I’m afraid I’m getting into the market at the wrong time. My too late. Did I miss it or are things going to be so bad that we can’t do deals and this is the best time to be in the business? And this is why I love wholesaling is because wealth doesn’t disappear. It transfers. Now, what do we mean by that? So the world’s soon going to be on sale. Prices are going to be at an all time low for houses. Again, we always need to be asking, where is that she’s moving to? And what worked yesterday may not work tomorrow. So what does that mean? It’s like wealth is transferring and it constantly does. In real estate, it moves from one market to another market, one type of house to another type of house, maybe apartments. They’ve been working really well for the last five, ten years. Maybe they’re not going to be working well the next 5 to 10 years. We don’t know. But we don’t have to know because with wholesaling we follow the demand. That’s as simple as it gets. Like we want to know what the buyers are buying and where all of that information is available pretty much for free online if you know where to look. Okay. And that’s what we do as wholesalers, as a wholesaler. And if you don’t know what a wholesaler is, it’s somebody who gets a property from a motivated seller under contract to buy it. And we either buy it or we assign our contract, but we sell that deal to somebody else for a higher price. Five, $10,000, $20,000 wholesale fee. Okay. We’re working on right now our average I’d say over the last few months or so, our average profit on making land deals maybe aren’t as big as houses, but it’s a lot less work in some areas. But our average profit is 80 $600 about there. Okay. Some of them are more. Some of them are less. Some of them were selling with owner financing. And how do I pick a county to go into? We’re going after rural vacant counties. Where how do I pick? How do I know which county I look to see where people are buying properties? Yeah, that’s it. And Gavin, talk a little bit about wholesaling in terms of why this is so important for the new investors, because we we don’t actually buy the property right. Until we know we have a buyer.
Gavin: Yeah, absolutely. I mean, you should always have the intent, right, to close on the property where you can through hard money, private money, again, your network. So there is obviously options to do that. But as Joe said, you want to follow demand. And as soon as you know what they are, what they’re looking for, what they’re buying at in them, in them particular areas, you’re just going to go and then create the spread. So if you do it in a reverse order and understand that you know exactly then where you need to be price wise. So if you know in that area that the investors are paying 80,000 and you got it to 75 or 70 or 60, you can start to see then how your your profit is being built into that deal. And I think a lot of people that knew just like me when I started, do you think you need to know repairs? You think you need to know all these things and you don’t you don’t need to know any of them things, right? You just taking averages. The buyer, if you build the relationship with the buyer, they’re going to tell you everything that you need to know and your transition, that information that they’re giving you after they see the property and you’re going to use that as leverage to go and negotiate that deal down if you need to. Let’s say the repairs are more than what you expected. The buyer is going to tell you their needs. This needs this, it needs that. It’s going to cost X amount. You’re going to be able to go to the seller, renegotiate that to get it down. So the reason is, again, wholesaling for me is it’s easy to understand, it’s not easy to do effort, work in the to understand it. You buy at one price, you sell for a high price to a buyer. It doesn’t mean it doesn’t get any easier than that. But then the doing parts, the hard part, right? That’s why you’ve got to be consistent. But you control property with our own in it and also you don’t need a lot of money to actually do this, which is also important. So it’s good entry level to get you in.
Joe: Yeah. So if you’re new to the business and you’re thinking about, well, where do I start? It’s important to understand and to be educated in these two main things here creative financing and fast cash strategies like wholesaling. How do you do that? Well, there’s podcasts, there’s books, there’s YouTube. Whatever you do, whatever you’re getting your education from, you’ve got to take action on what you learn. And a new season is coming. You know, I encourage you guys to be optimistic. It’s whether it’s recession, let’s say we’re completely wrong. It’s good to be optimistic. I quit my job in 2009 when the market. Was freefalling, using these wholesaling strategies that we’re going to be teaching you here. Okay. So you need to know where the cheese is moving to. And when you do what we teach, it’s going to be very, very simple, very obvious. It’s important to listen to our podcast. Gavin has one, REI network. I have one, real estate investing mastery, and you need to be putting your ear to the railroad tracks so you can understand what’s working today, not what was working two or three years ago. Yeah, so get educated fast cash strategies like wholesaling and creative financing strategies like lease options, etc.. Right now these are again we’re talking about big opportunities and real estate and we’re going to be talking about the big opportunities for real estate in general, big opportunities for marketing, for wholesaling, for creative financing. We’re going to talk a little bit about rural vacant land. Again, if you want this PDF and this mind map, just go to REI proof dot com REI proof dot com. You get this for free. Now, real estate in general, there’s a lot of opportunity that we could be talking about here and there’s a market everywhere. You just have to find it. You just need to know where the demand is. And some people call it reverse wholesaling, some people call it wholesaling. But you go and you find out what the buyers it’s always easier to sell buyers what they want rather than what you have. You just go out, try to find deals without really knowing what your buyers want. Then you try to sell it. You’re gonna have a hard time with it, but it is so much easier if you know what they want and then you go find it and get it for them. And what do buyers want? Well, we’re encouraging you, especially as it’s coming into this time of recession, to focus on affordable housing because people will always need a roof over their heads. The population of the US is growing and follow the demand. Why affordable housing? Number one reason cash flow. The easiest deals. The wholesaler deals that cash flow so a guy can come out gal rehab or an investor can come in and buy the property and they know if they finish the rehab and they can’t sell it, they can always keep it and rent it out and make cash flow on it. So the best markets to wholesale in are the ones that where you can wholesale I’m sorry, are the properties where you can cash flow your deals now for real estate in general, you should be ideally able to survive within three for three months with no income. So, you know, is this time of recession, who knows what’s going to happen? Your cash flow might be interrupted if you don’t have enough cash to make it through the next several months. If things get really, really bad, consider assets that you can liquidate as quickly as possible so you can have some peace of mind and make it through any kind of uncertainty and stuff. Don’t wait until it’s too late or you’re forced to fire sale things in an uncertain market. Now, this is one of the principles we talk about for investors in real estate in general. Never buy a house that you can’t wholesale. What does that mean? Like if you’re looking at maybe picking up a property to rehab it yourself, if you could not wholesale that deal to another investor, that should not be a deal that you want to buy. And you may think that you’re really good and you’re better than other investors and you’re like, Man, I could wholesale this thing and maybe make two grand on it. Or I could. My video just ended here. Petra or you could rehab it and make 20 or 30 grand. But you know what, Gavin? You tell the story pretty well. What happened to you? Do you remember?
Gavin: Yeah, yeah. No, absolutely. We there was one day last year that kind of went south on us and I could do wholesale too, and but for about 25030 minutes and we were projected to probably make about 80,000 on it if we flipped it and we was like, well, even if it goes wrong, we could make 64. I mean, worst case, right? It’s just it is what it is. We ended up making 22,000 on it. Okay. Now there’s a positive to take from that, right? Obviously, looking back, I would have wholesale at 25,000. Well, things went really wrong on it, but because we purchased it right, we still made money. And that is the that’s the goal. So if I would have bought that from a wholesaler, if I would have sold it to me, someone would have sold it to me for 25,000. I would have actually lost money on that deal. Okay. And that happens too often because you don’t buy, right. And if you’re going to sell as a market in which we are, then it gives you that ability to be able to get a deeper discount. So again, because someone wanted to pay me 25,000, I was like, Well, yeah, we might as well flip it and try and make 80,000, but they don’t always pay off, right? Things happen. We made a lot of money on some of them. We didn’t do so well. We didn’t lose money though. So that was that was the goal. And it was because well, we’ll buy in, right? So never, ever try and buy a property that no one else wants. And it happens all the time, Joe, I see it. All the time, yeah.
Joe: Which means sometimes you need to be focused on a quick nickel rather than a slow down. Because here’s the thing. Here’s the thing you got to think about. During that six, eight months that you’re rehabbing that house, you could have wholesale five or six properties and made the same amount of money with a lot less risk hassle. Yes, managing adult contractors like adult daycare. So sometimes a quick nickel is better than a slow time is. Actually, as we head into a recessionary period, it’s better to make a quick nickel instead of a slow down. And I would only buy and hold or keep for rehab. The home runs, OK?
Gavin: Hundred percent.
Joe: And then, you know, it’s a home run because you already have experience rehabbing. You already have buyers lined up. And, you know, if you can’t sell it, you could always keep it hold it as a long term rental or an Airbnb or something like that. So we’re encouraging people stay away from higher end homes. Those are the areas, the higher end homes like in the Midwest where I am, that would be $500,000 and up. Those are going to become harder deals to sell. And a lot of those homes also are newer. So there’s not as much work that’s needed in those homes or in those areas. Be careful with taking on too much debt. Make sure you have multiple exit strategies in your deals. And again, like you talked about, can you rent it out if you have to, you can’t sell it and you have to keep it and you’re going to be holding on to it. Can you do an Airbnb on it? Can you rent it out? That’s just it’s just leveraging yourself with protection and taking away the risk. All right. So another thing that’s important in real estate in general, and if you aren’t doing this already, you need to understand, start mailing in the physical mail contracts and written offers to anyone and everyone you speak with on the phone, even if they reject your offer. That’s something we’re seeing right now. Gavin really, really powerfully in land we’re getting probably by now because we’ve sent we’ve done that in this one county that we’ve been focusing on. We’re about four months into it, and we are getting just as many offers accepted on the third and fourth mail offer because we send an offer every 30 days than we did on the first mailing. So if you look at first mailing, way it works is we send the letters is call our 24 hour recorded voicemail, leave a voicemail, we send them an offer. We don’t even ever talk to them until they get our offer. But every 30 days we don’t hear back from them. We send them an offer. Even if we do hear back from them and they say, no, we’re still sending them an offer every 30 days, maybe 60 days, that they’re mad. We’re constantly sending offers. And now we’re at this point where we look we’re getting just as many offers accepted from the third and fourth mail as we did with the first. So always, always, always make offers. We talk about this a lot. Your speed to income is directly proportional to the number of offers that you make. Speed to income is directly proportional to the number of offers that you make. So when you send offers in the physical mail, this plants your flag and it gives you a reason to follow up later. Hey, Mr. Seller, you don’t remember me this Joe. I’m just following up on that offer I sent you. Have you sold your house yet? Is it still available? So when you send an offer because you know, you can send it by email and text and whatever. But the problem with that is it’s so easy to get lost. Emails get lost, text messages get lost. So when you send in the physical mail, you’re open. Rates are going to be much higher and it just helps you do more follow up. It’s makes you stand above anybody and everybody else doing those little things like that. I was just talking to a guy or saw his Facebook post. He’s a guy who’s trying to get into Hollywood and do movies, and he went to a big event like for gamers and stuff like that. And there’s a company there that does movies and games. I don’t remember the name of it, but there was tons of people trying to talk to this booth where this company was, and he was the only one who got it. Call back to follow up with. And you know why? Because he went did the extra work to send them waters and Cuban sandwiches. For some reason, he found out that these people in this booth, this company, for whatever reason, maybe it’s from where they are, I don’t know. But they love Cuban sandwiches. I don’t even know what a Cuban sandwich is. Do they have those in England?
Gavin: No, but they do in the States.
Joe: Yeah, it’s probably something with I have no idea what’s in a Cuban sandwich, but so then anyway, this guy gets a call from this company that’s really hard to get a hold of because they get pitched hundreds and hundreds of ideas every day. He was the only one who got a call and they said, Hey, we like your idea, number one. But you’re also you’re the only one. I called because we love Cuban sandwiches. So anyway, kind of making an offer to every single house kind of does the same thing. You’re doing something that your competitors are not doing, and this makes it easier to stand out in a competitive market. All right. So the thing is, don’t slow down. There are more motivated sellers now than there has been in a long time. And it’s starting to we’re starting to see it rise and increase. You may not believe it, but we’re seeing it and we’re starting to get more offers, accepting our offers, maybe our lowball cash offers, but also especially now. And we’ll talk about this later. A lot more creative financing offers where we can give them a higher price if they’re willing to wait for it. So you guys can get more deals if you’re actually out there trying it and working it and less competition because everyone’s getting scared. So don’t slow down your marketing. Do not stop. The other thing is to think about it as trying not to use your own cash right now as we come into a recession. Some people say cash is king. Some people say cash is trash. But cash is important. And as much as you can try not to use any of your own cash for your deals. If you have a rental properties, consider doing Section eight. If you remember that last recession we had in 2008 and nine Washington, Washington, D.C., the heart of the housing market there, did really, really well. It was one of the best performing markets during the entire recession last time. Why have so many government employees in Washington, D.C. and the Virginia area, a lot of defense contractors, government workers, etc., they were the number one employer at the time and government just doesn’t lay people off. And so as we go into recession, there may be renewed demand for Section eight housing. If I’m not a Section eight expert, but a lot of the rent comes from the government for Section Eight.
Gavin: Yeah, it’s paid on their behalf, isn’t it? So pretty much guaranteed then.
Joe: Yeah, pretty much guaranteed. And this kind of relates to what I was talking about before, like focusing on the lower income, medium priced homes, because those are the areas where you’re going to get better cash flow. One of the reasons why is because of Section eight. If you are if you’ve lost your job or you’re thinking about losing, you might lose your job. You need to know how certain you can keep your job or have a job to come back to if something happens. So what if you lost your job is what I’m trying to say. Why not learn how to do deals from home? You don’t have to go see the house. You can talk to sellers and buyers over the phone. So be thinking about like, what if I get this pink slip? Do I know how to do deals from home? Do it. And then let’s say you live in San Francisco where it’s very expensive, very difficult to do deals there. Do you know how to do deals virtually in different parts of the country where it’s easier to do deals? You need to make sure you understand. There’s something I wrote down here a while ago. In a time where people are concerned about liquidity, masterminds are an obvious expense to eliminate. This is something you’re considering. I urge you to rethink it. So a lot of you guys belong to masterminds or big coaching programs and you may think, Man, I’m worried about this recession, the economy. Maybe I need to cancel some of these things. Well, I really strongly encourage you, if it’s a good mastermind, to wait, because this is the best time to double down into masterminds community coaching, because you’re going to be hearing the cutting edge stuff of what is working. You’re going to be hearing from other investors in that community of what’s working for them. If you isolate yourself, become an island, you’re going to get stressed, you’re going to struggle, and it’s going to be harder for you. It’s important that you plug into a community of other investors that are doing deals today so you can learn what’s working, what’s changing, where do I need to go? What do I need to do? You want to add to that, Gavin?
Gavin: Like, yeah, I just think you’re exactly right. People will jump at that and say, Well, I can save here and I can save there, but even you need that group more than you’ve ever needed them because they’re going to be in the same boat or they’ve already figured it out, or they figure something that’s work and that they can share with you. And again, we’re not trying to reinvent the wheel. We’re just trying to do what works and do it so everyone can elevate and pull through together. So definitely agree. You’ve got to make sure that you stick with your community, especially potentially what’s ahead.
Joe: All right, good. Let’s talk about some big opportunities in real estate in terms of marketing, double up on cold calling, marketing and texting. People will be at home or they’re always at home, but like people will be. Yeah, I don’t know what I’m trying to say when I wrote that anyway. Yeah. Vacant houses. Great loss to call. Cold calling. Still working today. Follow up is super important, especially following them following up with old leads. If you have any current leads, consider texting and live broadcasts. Your efforts will be shown now, but even more so in 90 days. I’m not sure why I kind of wrote that down. I was thinking maybe about land here, especially with vacant four, four vacant land. Direct mail works very well. Basically, bottom line with marketing, what we’re seeing work the best for marketing right now. It’s really simple. Cold calling for houses. Raghavan and direct mail for vacant land.
Gavin: Yeah, I mean, that’s what we do. Meantime, our work still. But you just got to make sure that you have the budget and you doing the quantity because you still probably only going to get half a percent. I know you get way more with land, which is why it works. And this is, as we said, with inbound versus outbound, but it all comes down to a budget team. How many members? I mean, there’s a lot more that goes into it, too, to give you enough leads. I mean, I think Terry, in our mastermind that we just did in Saint Louis, he was saying that his close ratio of the cold call is about $700 a deal.
Joe: That’s the money he spends in marketing per deal.
Gavin: Per deal. And that’s and that’s the VA’s and average and that’s what mine used to be. Mine’s actually a little higher. He’s got a better return than me right now, but he’s also had a few hundred thousand a month. So that’s why is is is definitely lower. But you can’t beat that in the industry. I mean, it is so low. So that’s really good.
Joe: Yes, very good. Okay. Just looking at my notes here. Direct mail works very well. Somebody was just asking to. Are you pulling lists and what lists are you marketing to? Yes, we’re still pulling lists for houses we like. Well, first of all, I love small towns for houses. I love the small communities, the small markets. I’m pulling for houses on the house side of the business, houses that are cheap, under $150,000 in small towns, free and clear, no mortgages. Absentee owner, they’ve owned it for over ten years. Are you an absentee owner? They’re going to for over ten years. It’s free and clear. There’s no mortgage and it’s under the estimated value of the house is under $150,000. They have what kind of list?
Gavin: I mean, I do a bit broader. I like to do an absentee as kind of the foundation. So any state in our state, again, probably ten, eight, ten years plus of ownership equity probably 40 to 100% plus or no in equity. And I sometimes will cap depending on the market up to 300,000. Again, you can wholesale a higher house. It’s just you shouldn’t be buying one, right? If you have a buyer that’s ready to buy. Then we’ll sell it as a wholesaler. So we sometimes will cap it 300,000 depending on where it’s located, and then we will build lists off that. So then once we have that foundation list built, will then go into the time tax delinquent code violation. You can get the water shut off, divorce, and then you start building extra lists on top of that book. But at least you got the absentee list. Kind of is the foundation to start with.
Joe: Very good. All right. So I got more of the mind map here. I’m going to show you that name. I mean, this works so well. I got a new little toy called the Stream Deck, which allows me to do things like this, like this or like this, which is pushing a button. All right. Big opportunities in real estate, specifically for wholesaling. We’re telling everybody right now, if you haven’t already, make sure you are now focus on finding buyers first. It’s so important and so much easier to have your buyers first because again, like we said before, it’s easier to sell what they want rather than what you have. It’s important in any market, especially now, though, and you should always be calling and emailing your current buyers and find out who is still buying right now and what are they buying? How do you call or find the buyers? Or you can call realtors or recent transactions, call landlords and property managers. You can look up recent investor transactions, trace them, call them, email them, etc.. But one of my favorites call Heart. I’m going to say call local hard money lenders. A lot of times local hard money lenders, not the big national companies, but the local ones. They have they have a real good idea what’s going on in the market. And they know who the buyers are that are buying what they’re buying. And if they will lend you money on that deal, then, you know, it’s a good deal. And then if they can lend you money on the deal, then you can actually, as you’re advertising the property, you can say, hey, we have financing already in place for this deal. So local hard money is are great hard money lenders are great. And you can also offer them a three or four or $5,000 finder’s fee if they bring you a buyer and they will get on the phone, probably a few phone calls, a few texts, if it’s a good deal, will bring you a buyer, maybe share with them, hey, listen, I’ll give you 25% of my profits.
Gavin: You also have wholesalers as well. There’s another one.
Joe: Oh, I forgot to. Yeah, wholesalers are great.
Gavin: They are our buyers.
Joe: So, again, follow the demand for wholesaling. Make sure you know where the cheese has been moving to. And here’s something that’s really important. We’re going to talk more about this later. Learn to offer the seller options if they say no to your cash. This is going to be especially true in a recession because there’s a lot of really good mortgages out there that are two and a half, three and a half percent interest rates, 30 year AM, there’s 20 years left or whatever they’re they’re going to be getting behind on payments. They’re getting stressed for whatever reason. They can’t sell it or don’t want to sell it. They don’t want to pay a realtor commission and it needs too much work. So if you make a cash offer, it is way too low. You need to learn to offer them something else. If they say no to your cash offer, you know, maybe something like, Well, what if I could lease your property for a year or two and then buy it? That wouldn’t work for you. What? What if I could get you the same equity that you would get, Mr. Seller, if you sold with the realtor, if you were willing to just wait for it, would that be fair? If I could get you the same equity you would get and you can just leave the house, you don’t even have to fix it up. So learn to offer the seller’s options. And one of my favorite creative financing options techniques is lease options. This is why I love that you don’t have to worry about title companies. If you structure the owner financing the right way, you have to pay the interest or maybe very, very low interest you can get. The sellers, whatever price they want, if the terms are right to worry about title companies. I quit my job in 2009 doing just these options. It’s much easier to negotiate deals when you can offer sellers whatever price they want. You don’t have to pretend you have the money to close or be reliant on cash buyers and hope that the cash buyers can come and you can sell your light deals lightning fast. Even without a buyers list. You understand some of these creative financing. So what do we mean by that as well? A great strategy that works in a down market, in a down economy is buy with creative financing and sell on creative financing. So try to find if the seller says no to your cash offer. And by the way, let me say this. This is important, too. We never go into a deal trying to fit a square peg into a round hole. We never go into a deal trying to get to make a lease option offer with the seller or just make a cash offer because every sellers, different situations are different. Their stories are different. You may have one seller that has a lot of equity and they’re extremely motivated. They have to sell this house in the next one or two months because they’re moving to Florida and they have to sell this house to buy another one or whatever. So a lease option is not going to work for that, right? Maybe a seller just got a mortgage two or three years ago. They’re going through a divorce. They’ve lost their job. A cash offer is not going to works. Don’t make a cash offer to them. Make them a lease option offer or subject to offer. So we always go into conversations with sellers with trying to figure out what their situation is, what’s their problem, do they really actually even need our help and then figure out what kind of situation they’re in and if they have a lot of equity, make them a cash offer. If they don’t have a lot of equity, make them a creative financing offer. You want to add anything to that?
Gavin: Yeah. I mean, you’re right, if he can give you that to solve the problem. Right, find out what the problem is and bring the solution to the table and that’s exactly how you’re going to do it. The other thing is as well, when you offer the creative offers, you’re showing a different side that you’re not just trying to take the home. Right. Even though the cash offer may be the way that you have to go to give different options is good. And when you start then really learning, positioning and how to actually pair office together, it changes the game because you can you compare a sandwich lease option with a cash offer. The cash offer looks much lower because it is so it actually looks elevate your lease option offer to be higher so you can start learning how to pair these offers together to actually get contract signed as well.
Joe: South Bay Wireless. Thank you Joe for all your great content. I can’t wait to your reviewing my deals and. Oh yeah, I can’t forget Gavin. Awesome. Okay, let’s go back to this main map because we’re almost done in the we’re going to show you what we’re going to be talking about next. But rural vacant land is working really well. Preppers are looking for space. People are looking for recreational land and place where they can go camping. There’s always going to be a trend, and it’s growing even more and more away from high density. Two areas where there’s a low cost of living. They want getaway land and you can buy land super cheap right now, 20% of what the estimated value is. So we’re buying vacant land at 20 to $0.25 on the dollar. That’s in other words, that means if a five acre lot is worth $10,000, 2 hours outside of the city, it’s worth ten grand. It’s five acres. We find these deals all the time. We’re buying it for $2,000. Right. And we’re selling it on terms on our financing for ten or for cash for maybe eight or nine. So you can find vacant land really, really cheap. Now, we’ve got a lot more things to cover to show you that in a second here. But if you guys want some help, get this PDF, get this mind map REI proof dot com REI proof dot com. We put the banner up here so you can really see it. There it is. You can get this PDF report that we have right here. It’s a guide. It’s a road map for doing 100,000 a month, $100,000 a year, ten k a month. Your first deal, whatever it is, we’re going to break it down the steps and you’ll also get this mind map if you go through it. Now, there are some other things that we’re going to be covering next in this thing that I’ve been anxiously trying to get to this. But these are the important things that you need to be focusing on. And we’re going to be diving deeper into this, number one, making multiple offers. Number two, how to do your marketing for buyers. And number three, follow up. So in the next few videos, as we do this series, we’re going to be showing you the calculator, the spreadsheet that we use. It’s actually the spreadsheet is included in this mind map right here. We have a calculator and tools that you can use for making owner financing offers, making cash offers. We’re going to give you the marketing we use for buyers. We’re going to give you the tools and the systems and the resources to use following up. So stay tuned for that. If you want to just get this now get this mind map get the PDF go to REI proof dot com REI proof dot com. All right you Gavin anything else to say before we wrap up?
Gavin: No, go and get you guys, it’s free. Why wouldn’t you? That’s what I’d be asking myself. So you should have already got it. If you’ve been watching us over the last few days, we’re going to be going back, maybe live tomorrow, probably maybe tomorrow, 1030, maybe central time tomorrow. So watch out for that. And then someone just asked. But yeah, I mean, as it were, we’re ready to go. And yeah, going to go and get the PDF and get ready for for what’s ahead. Start, now’s the time, right? As we told you earlier, now is the time someone commented on all we did a live this morning and they were saying, Oh, I’ve been waiting for six months. You can’t wait for anything, right? We thought we were going to go into recession when the pandemic hit. And what did the market do? It went crazy. So you never know. So you just have to invest for today, but just invest more and be ready.
Joe: Very good. All right, guys, go to REI proof dot com to get this PDF, get this mind map and we’ll see you on the next video as we come out. Thanks for listening. See you guys.
Gavin: Bye bye.